The EOS price (EOS/USD) has seen a significant correction since it hit a near two-week high on Saturday, June 2.
The fifth-largest cryptocurrency on the market surged to $15.61 on Saturday, its highest price level since May 11. The digital token pulled back in the latter stages of the session, finishing the day at $14,74. This was still significantly higher than its opening level of $12.29.
The surge was driven by the launch of EOSIO 1.0, the open source blockchain software by EOS’ development company Block.one. The software was released on Saturday, following the end of EOS’ long-running initial coin offering, which raised more than $4 billion over 355 days. The release is meant to facilitate the migration of EOS from the Ethereum (ETH) network to its own blockchain. This requires users to transfer their EOS tokens to the coin’s blockchain.
During the migration process EOS tokens held ERC-20 wallets have been locked, while crypto exchanges have frozen deposits and withdrawals. This has created limited EOS supply, which has in turn led to increased volatility following the initial price surge. Yesterday, the EOS price rose to an intraday high of $15.29, before closing the session at $14.62. The coin’s price has continued to decline in today’s trading.
Another possible reason for the price correction could be that Block.one does not plan to develop and operate its own network based on EOSIO. Instead, the open source software is meant to serve as a foundation for independent blockchain networks that would compete to become the dominant EOS mainnet.
In today’s trading, the EOS price stood at $13.87, as of 10:37 BST. The digital currency has lost 5.7% of its value in the past 24 hours., according to data from cryptocurrency tracker Coinmarketcap. The coin’s total market capitalisation currently stands at $12.4 billion.